Kazakhmys sells 50% in Ekibastuz GRES-1 to Samruk-Energo08 april 2014, 13:53
Kazakhmys PLC has finalized the sale of 50% in Ekibastuz GRES-1 to Samruk-Energo JSC for $1.25billion, Tengrinews reports referring to the company.
Ekibastuz GRES-1 is the largest coal-fueled thermal power plant in Kazakhstan that generates 13% of the country's electricity. The plant is located in Ekibastuz town in northeastern Kazakhstan. “The plant has been undergoing a modernization that will increase its power generating capacity from 2500 MW to 4500 MW. The capacity is already at 3000 MW,” Kazakhmys said.
“We are pleased to announce the finalization of the deal. We are proud of Kazakhmys involvement in the revival of the power plant and creation of additional benefits for our investors. The sales of Ekibastuz GRES-1 will strengthen the balance of the company and enable it to focus on copper production and complete a planned reorganization,” Kazakhmys CEO Oleg Novchuk said.
London-listed Kazakhmys purchased Ekibastuz GRES-1 in 2008 for $1.26 billion. In 2010, the company sold 50% of the plant to Samruk-Kazyna Fund for $681 million. Subsequently the National Welfare Fund transferred its shares of the GRES-1 to its subsidiary Samruk-Energo JSC.
By selling the second half of the plant's stock Kazakhmys withdraws from the plant completely making Ekibastuz GRES-1 100% state owned.
Kazakhmys is the largest copper producer in Kazakhstan and one of the top worldwide with 16 operating mines, 8 concentrators and a copper smelter. Kazakhmys Mining’s operations are fully integrated from mining ore through to the production of finished copper cathode and rod. Production is backed by a captive power supply and significant rail infrastructure.